US Equities Analysis

TPR — Tapestry, Inc.

Research evidence pack

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 22.41%
Profit Margins 8.44%
Return on Equity 60.91%
Return on Assets 16.44%
Free Float 0.2B
Dividend Yield 1.10%
Short Int % Utilisation 9.0%

2.2 Growth

Metric Value
Revenue Growth 21.2%
Free Cash Flow 1.53B
EBITDA 15.9 (Ratio)
Enterprise Value 31.33B
EV/Revenue 3.99
EV/EBITDA 15.9

Revenue growth of 21.2% places the company in a high-growth category.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 41.47%
Risk / Std Dev (Ann.)* 40.79%
1-Year Price Return* 29.68%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $128.98
52-Week Range $93.00 – $164.80
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $7.01B
Prior annual revenue $6.67B
EBIT $301.50M
Tax rate 15.20%
NOPAT = EBIT × (1 − tax rate) $255.67M
Forecast start-growth basis 5.09%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $255.67M
Add: depreciation & amortisation $224.90M
Less: capital expenditure -$122.70M
Less/(add): working-capital cash-flow movement -$39.30M
Current unlevered FCFF $318.57M

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 5.09% $268.68M $236.35M -$128.94M -$41.30M $334.78M $317.36M
2 4.44% $280.62M $246.84M -$162.71M -$43.13M $321.61M $273.95M
3 3.79% $291.27M $256.21M -$198.00M -$44.77M $304.71M $233.24M
4 3.15% $300.43M $264.27M -$234.25M -$46.18M $284.28M $195.53M
5 2.50% $307.94M $270.88M -$270.88M -$47.33M $260.61M $161.08M

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 1.46
Cost of equity 12.76%
Pre-tax cost of debt 1.35%
WACC 11.28%
WACC validation within standard range

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $3.04B
Implied terminal EV / EBITDA 4.80x
Terminal value as % of enterprise value 60.13%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $1.18B
Present value of terminal value $1.78B
Indicated enterprise value $2.96B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $2.96B
Less: gross interest-bearing debt $3.90B
Add: cash and equivalents $1.12B
Add: affiliate investments $0.00
Less: minority interests $0.00
Indicated common equity value $183.17M

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 222,500,000.00
Share-count basis reported diluted weighted-average shares
Current market price $134.05
DCF indicative value per share $0.82
Indicative value vs. market price -99.39%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range pass
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% review required

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 3/4 evidenced checks
Lynch-inspired balance-and-growth checks 3/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:51:12.195564 UTC; latest reported fiscal period: 2025-06-30 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

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